Understanding Activity Setup

If you use the JD Edwards EnterpriseOne Advanced Cost Accounting system for activity-based costing, you must set up activities. An activity is an aggregation of actions that are performed within an organization. The characteristics of an activity are as follows:

• Usually a subset or output of a process.

• Consumes resources.

• Can be broken down by user-defined attributes, such as value-added activities or non-value-added activities.

• Usually falls into two categories: product-related or customer-related.

• Sometimes synonymous with processes.

  Note: To form a hierarchical process, you can associate activities or subprocesses to a group. You assign activities and subprocesses to parent groups. You set up activities and groups in the same manner. You can assign attributes, category codes, and driver codes to either an activity or a group.